CEI Limited (formerly: CEI Contract Manufacturing)

[NTL]

CEI Book to Bill Ratio has improve but still not at healthy range yet. The challenge is if CEI could consistently secure contracts ahead of billing.

Net margin was ~7.5% prior to 2009 crisis and stay ~3.3% for last 3 years. In FY2014 it archived 4.2% or 27% improvement. A sign of turning around to be more profitable.

IMO, a high mix and low volume CEM, it's net margin should be > 6%.



.....................Revenue......Gross Profit......Net Profit......Order Book.... BTB
1HY2013........54.173M......11.528M...........2.065M........46.0M........... 0.85
2HY2013........55.490M......12.599M...........1.573M........47.3M .......... 0.85
1HY2014........56.510M......12.894M...........2.261M........58.2M .......... 1.03
2HY2014........64.812M......16.451M...........2.947M........59.8M ......... 0.92

Did a quick study on the company financial performance.

.....................Revenue......Gross Profit......Net Profit......Order Book
1HY2013........54.173M......11.528M...........2.065M........46.0M
2HY2013........55.490M......12.599M...........1.573M........47.3M
1HY2014........56.510M......12.894M...........2.261M........58.2M
2HY2014........64.812M......16.451M...........2.947M........59.8M

From what is seems, their order book tends to be completed by next half yr, with a little bit more extra. Thus, a better 1HY2015 will be expected? And more dividend to be announced?

Hi Ray,

What will be considered as healthy for book-to-bill? Above 1? As the contracts are likely to be short term, and complete within half a year, there must be a big order just before the end of announcement period for that to happen?

I will need to spend a little more time to understand the company. Any inputs will be appreciated.

Thanks.